ORLANDO, Fla. – Chase Headley is headed back to the Padres, and suddenly the Yankees have even more cash on hand to spend this winter.

A reunion with third baseman Todd Frazier is a possibility, and the Yanks must be considered in play for a top-of-the-market free agent starter such as Yu Darvish with their new payroll flexibility.

Currently a free agent, CC Sabathia has expressed his desire to return to the Yanks' rotation. The Yankees have also been linked to interest in free agent right-hander Alex Cobb.

“Even with (Giancarlo Stanton) added, we’re comfortably under the threshold with some more money to spend on whatever we deem we want to spend it on,’’ Yankees managing general partner Hal Steinbrenner said on Monday, speaking generally about the club’s winter direction.

The Yanks finalized a trade Tuesday afternoon to send Headley to San Diego along with right-hander Bryan Mitchell, whose potential as a starter enabled general manager Brian Cashman to off-load more salary.

In exchange, the Yankees added to their already deep outfield, acquiring Jabari Blash, 28, who slashed .213/.333/.341 in 61 games for San Diego last season with five homers and 16 RBI.

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New York Yankees first base coach Tony Pena greets infielder Todd Frazier, right, in the dugout during a baseball game with the Minnesota Twins Wednesday, July 19, 2017, in Minneapolis. The Yankees acquired Frazier on Tuesday in a trade with the Chicago White Sox. (AP Photo/Bruce Kluckhohn) Bruce Kluckhohn, AP

New York Yankees third baseman Todd Frazier sits in the dugout with Aaron Judge during a baseball game against the Minnesota Twins Wednesday, July 19, 2017, in Minneapolis. The Yankees acquired Frazier on Tuesday in a trade with the Chicago White Sox. (AP Photo/Bruce Kluckhohn) Bruce Kluckhohn, AP

PHOENIX, AZ - MAY 23: Todd Frazier #21 of the Chicago White Sox leans on the dugout rail before the start of the MLB game against the Arizona Diamondbacks at Chase Field on May 23, 2017 in Phoenix, Arizona (Photo by Christian Petersen/Getty Images) Christian Petersen, Getty Images

CHICAGO, IL - AUGUST 25: Todd Frazier #21 of the Chicago White Sox celebrates after hitting a wlakoff RBI single against the Seattle Mariners to score Adam Eaton #1 (not pictured) in their win at U.S. Cellular Field on August 25, 2016 in Chicago, Illinois. The Chicago White Sox won 7-6. (Photo by Jon Durr/Getty Images) Jon Durr, Getty Images

CHICAGO, IL - SEPTEMBER 12: Todd Frazier #21 of the Chicago White Sox fist pumps pediatric cancer patient Atia Lutarewych before a game against the Cleveland Indianson September 12, 2016 at U.S. Cellular Field in Chicago, Illinois. (Photo by David Banks/Getty Images) David Banks, Getty Images

CHICAGO, IL - SEPTEMBER 28: Todd Frazier #21 of the Chicago White Sox hits a career high 40th home run of the season, a solo shot in the 7th inning, against the Tampa Bay Rays at U.S. Cellular Field on September 28, 2016 in Chicago, Illinois. (Photo by Jonathan Daniel/Getty Images) Jonathan Daniel, Getty Images

TORONTO, ON - JUNE 17: Todd Frazier #21 of the Chicago White Sox hits a solo home run in the second inning during MLB game action against the Toronto Blue Jays at Rogers Centre on June 17, 2017 in Toronto, Canada. (Photo by Tom Szczerbowski/Getty Images) Tom Szczerbowski, Getty Images

OAKLAND, CA - JULY 03: Todd Frazier #21 of the Chicago White Sox hits a double against the Oakland Athletics during the second inning at the Oakland Coliseum on July 3, 2017 in Oakland, California. (Photo by Jason O. Watson/Getty Images) Jason O. Watson, Getty Images

CINCINNATI, OH - JULY 13: National League All-Star Todd Frazier #21 of the Cincinnati Reds celebrates with the trophy after winning the Gillette Home Run Derby presented by Head & Shoulders at the Great American Ball Park on July 13, 2015 in Cincinnati, Ohio. (Photo by Elsa/Getty Images) Elsa, Getty Images

CINCINNATI, OH - JULY 13: National League All-Star Todd Frazier #21 of the Cincinnati Reds celebrates with his brother Charlie after winning the Gillette Home Run Derby presented by Head & Shoulders at the Great American Ball Park on July 13, 2015 in Cincinnati, Ohio. (Photo by Elsa/Getty Images) Elsa, Getty Images

CINCINNATI, OH - JULY 21: Todd Frazier #21 of the Cincinnati Reds watches the action in the third inning against the Chicago Cubs at Great American Ball Park on July 21, 2015 in Cincinnati, Ohio. (Photo by Andy Lyons/Getty Images) Andy Lyons, Getty Images

SAN DIEGO, CA - JULY 11: Todd Frazier of the Chicago White Sox competes during the T-Mobile Home Run Derby at PETCO Park on July 11, 2016 in San Diego, California. (Photo by Harry How/Getty Images) Harry How, Getty Images

DENVER, CO - JULY 08: Todd Frazier #21 of the Chicago White Sox scores on a Yolmer Sanchez 2 RBI triple in the first inning against the Colorado Rockies in the first inning at Coors Field on July 8, 2017 in Denver, Colorado. (Photo by Matthew Stockman/Getty Images) Matthew Stockman, Getty Images

Chicago White Sox third baseman Todd Frazier watches his team during the ninth inning a baseball game against the Los Angeles Dodgers on Tuesday, July 18, 2017, in Chicago. The Dodgers won 1-0. (AP Photo/Charles Rex Arbogast) Charles Rex Arbogast, AP

MIAMI GARDENS, FL - AUGUST 24: Todd Frazier #21 of the Cincinnati Reds fields a fly ball during game one of a doubleheader against the Florida Marlins at Sun Life Stadium on August 24, 2011 in Miami Gardens, Florida. (Photo by Mike Ehrmann/Getty Images) Mike Ehrmann, Getty Images

PITTSBURGH, PA - JUNE 18: Todd Frazier #21 of the Cincinnati Reds throws over to first base during the game against the Pittsburgh Pirates on June 18, 2014 at PNC Park in Pittsburgh, Pennsylvania. (Photo by Joe Sargent/Getty Images) Joe Sargent, Getty Images

PITTSBURGH, PA - SEPTEMBER 20: Todd Frazier #21 of the Cincinnati Reds fields a ground ball barehanded in the sixth inning against the Pittsburgh Pirates during the game on September 20, 2013 at PNC Park in Pittsburgh, Pennsylvania. (Photo by Justin K. Aller/Getty Images) Justin K. Aller, Getty Images

Cincinnati Reds Todd Frazier signs autographs before their game agaisnt the Milwaukee Brewers in the first inning of their baseball game in Cincinnati Friday July 4, 2014. (AP Photo/TomUhlman) TOM UHLMAN, AP

BOSTON, MA - MAY 07: Todd Frazier #21 of the Cincinatti Reds poses for a portrait prior to the interleague game against the Boston Red Sox at Fenway Park on May 7, 2014 in Boston, Massachusetts. (Photo by Jared Wickerham/Getty Images) Jared Wickerham, Getty Images

Cincinnati Reds' Todd Frazier points to the dugout after hitting a double off Atlanta Braves relief pitcher Cristhian Martinez to drive in three runs in the seventh inning of a baseball game on Saturday, July 23, 2011, in Cincinnati. Cincinnati won 11-2. (AP Photo/Al Behrman) Al Behrman, AP

Jake Roth-USA TODAY Sports
Defending home run derby champion Todd Frazier of the White Sox bats in the 2016 derby in San Diego on Monday night. Frazier lost in the finals to Miami?s Giancarlo Stanton.
Jul 11, 2016; San Diego, CA, USA; American League infielder Todd Frazier (21) of the Chicago White Sox at bat in the quraterfinals during the All Star Game home run derby at PetCo Park. Mandatory Credit: Jake Roth-USA TODAY Sports Jake Roth, Jake Roth-USA TODAY Sports

Reds first baseman Todd Frazier gets a hit against the Mets in the first inning Saturday.
Cincinnati Reds' Todd Frazier gets a hit off New York Mets starting pitcher Dillon Gee in the first inning of a baseball game, Saturday, Sept. 6, 2014, in Cincinnati. Travis d'Arnaud catches at right. (AP Photo/Al Behrman) Al Behrman, AP

Todd Frazier, shown celebrating with his brothers after he won the Gillette Home Run Derby the night before the Major League All-Star Game in July, was traded by the Cincinnati Reds to the Chicago White Sox on Wednesday.
iTodd Frazier, shown celebrating with his brothers after he won the Gillette Home Run Derby the night before the Major League All-Star Game in July, was traded to the Chicago White Sox Wednesday, reports said. Joe Robbins, GETTY IMAGES

MINNEAPOLIS, MN - JULY 14: National League All-Star Todd Frazier #21 of the Cincinnati Reds bats during the Gillette Home Run Derby at Target Field on July 14, 2014 in Minneapolis, Minnesota. (Photo by Elsa/Getty Images)
MINNEAPOLIS, MN - JULY 14: National League All-Star Todd Frazier #21 of the Cincinnati Reds bats during the Gillette Home Run Derby at Target Field on July 14, 2014 in Minneapolis, Minnesota. (Photo by Elsa/Getty Images) Elsa, Getty Images

Chris Rotolo/Staff Photo
Cincinnati Reds third baseman and Toms River East Little League alumnus Todd Frazier poses with members of the Brick Bulldogs at the 2014 USABL & Frazier Baseball Halloween Havoc Tournament in Toms River on Sunday. Chris Rotollo

Toms River, NJ 3/26/2004 L-R Marc Fink, 1994 Jackson Memorial High School grad holds the Shore Conference home run record and Todd Frazier, Toms River High School South senior wants to beat that record this year. Michael Sypniewski/Staff Photographer Digital Collections/IPTC

PITTSBURGH, PA - JUNE 25: Todd Frazier #21 of the Cincinnati Reds on deck in the seventh inning during the game against the Pittsburgh Pirates at PNC Park on June 25, 2015 in Pittsburgh, Pennsylvania. (Photo by Justin K. Aller/Getty Images) Justin K. Aller, Getty Images

CINCINNATI, OH - MAY 31: Todd Frazier #21 of the Cincinnati Reds hits a home run in the 4th inning during the game against the Washington Nationals at Great American Ball Park on May 31, 2015 in Cincinnati, Ohio. (Photo by Andy Lyons/Getty Images) Andy Lyons, Getty Images

Cincinnati Reds' Todd Frazier waits in the dugout for his turn to bat in the sixth inning of a baseball game against the Milwaukee Brewers, Friday, July 3, 2015, in Cincinnati. The Brewers won 12-1. (AP Photo/John Minchillo) John Minchillo, AP

Todd Frazier (right) of the Cincinnati Reds greets his brother Charlie Frazier (left) after competing in the first round during the 2014 Home Run Derby on July 14.
Jesse Johnson/USA TODAY Sports
Jul 14, 2014; Minneapolis, MN, USA; National League infielder Todd Frazier (right) of the Cincinnati Reds greets his brother Charlie Frazier (left) after competing in the first round during the 2014 Home Run Derby the day before the MLB All Star Game at Target Field. Mandatory Credit: Jesse Johnson-USA TODAY Sports Jesse Johnson, Jesse Johnson-USA TODAY Sports

Headley is due $13 million in the final year of his four-year contract.

The biggest motivation for the trade was "it creates a lot more financial flexibility,'' Cashman said, both in getting under the $197 million luxury tax threshold and for potentially spending on areas of need.

A free agent, Frazier's contributions to Yanks' playoff run last season and his local ties as a Toms River resident play favorably, though length of contract might be a sticking point.

Cashman has previously had discussions this winter with Frazier's agent, and new Yankees manager Aaron Boone said he's "a big fan'' of Frazier as a player and as a person.

The Yanks have internal options at third base in Miguel Andujar, Ronald Torreyes and Tyler Wade. Gleyber Torres is also an option at third, or to replace Starlin Castro (traded to Miami for Stanton) at second base.

"We have some hungry, talented inexperienced kids ready to prove that they're ready to take the next step,'' Cashman said, adding that Andujar's defense has improved.

On Tuesday, the Yankees were also connected to inquiries on Baltimore star third baseman Manny Machado, poised to join Bryce Harper atop next year's free agent class.

Also on Tuesday, the Yankees were connected to interest in Tigers right-hander Michael Fulmer and Diamondbacks' lefty Patrick Corbin per USA Today's Bob Nightengale.

Corbin is eligible for free agency after the 2018 season, but Fulmer just completed his second MLB season and the 2016 AL Rookie of the Year would potentially net a haul in prominent prospects.

But the Yanks have an attractive depth of young talent from which to trade, led by outfielder Clint Frazier - whose status is unclear following the acquisition of Stanton.

Royals left-hander Danny Duffy is drawing inquiries according to reports and he could be of potential interest to the Yanks; Duffy is due $60 million over the next for years.

The Yankees now have questions marks at both second base and third base.

Last season, Headley, 32, slashed .273/.352/.406 with 12 homers and 61 RBI. He was displaced at third base by the acquisition of Frazier at the trade deadline and was moved to first base as the Yanks awaited Greg Bird’s return from the disabled list.

Headley was penciled back in at third base for the Yanks in 2018, with Frazier entering free agency.

Mitchell, 26, went 1-1 with one save and a 5.79 ERA in 20 games in 2017, in six separate call-ups with the Yankees.

Internally, the Yankees have a third base option in Miguel Andujar, who had a big-league cameo in 2017. A potentially potent hitter, Andujar is suspect defensively.

Already, rookie Gleyber Torres is an option to start at second base, with Starlin Castro traded to Miami in the Stanton deal. The Yanks shed Castro's $11 million annual salary through 2019 in that trade.